Half of U.S. Renters Spend More Than 30% of Their Pay on Housing. Take These Steps if You're One of Them

It's hardly a secret that housing is commonly the typical American's largest monthly expense. But with housing costs being elevated, a lot of people today are struggling financially.

Data from the Joint Center for Housing Studies of Harvard University finds that half of U.S. renters were spending more than 30% of their income on housing as of 2022. That's problematic, because spending above 30% of your earnings on housing could put you at risk of falling behind on not just your rent payments but also additional bills. And that could, in turn, result in a lot of damage to your credit score.

Also, if you continue to spend more than half of your paycheck on rent, it might seriously hinder your ability to meet other goals. Those might include building up retirement savings, accumulating an emergency fund, or saving for a down payment on a home you own yourself.

If you're currently spending more than 30% of your paycheck on rent, it may be time for some changes. Here are some options to explore.

1. Look into different neighborhoods with fewer amenities

Living in a neighborhood with easy access to public transportation, parks, and retail spots might cost you in the form of higher rent. Similarly, you might pay a lot more to rent a home in an area with a highly rated school district.

Think about the amenities you're paying for and see if a move to a different neighborhood makes financial sense. Granted, there's a cost involved in moving itself, but if you can get around that, such as by enlisting friends to help, then the rent-related savings could be worth it. Plus, the amenities you end up forgoing may not constitute such a huge loss.

Let's say you live in an area with great schools but you don't have kids. You may be paying for a benefit you aren't using. Similarly, if you're paying for easy access to great restaurants but have a newborn at home and don't anticipate going out a lot in the coming years, you may be able to move to a cheaper (and quieter) neighborhood.

2. Boost your income with a side job

It can be really difficult to take on extra work when you already have a full-time job. But it may be that you don't have many options for finding a rental that's less expensive than what you're paying for now. If so, boosting your income with a second job may be your best option.

The good news, though, is that there are flexible side jobs to be had -- ones you can do at your own pace and schedule. These include driving for a ride-hailing service or working for a grocery delivery service. You may also be able to find remote work you can do when it's convenient, like data entry. This way, you don't need a car to earn extra money.

3. Look into rental assistance

The rental assistance programs that were put in place in the wake of the pandemic may no longer be available to you. But that doesn't mean you're totally out of luck. There may be resources available to you through your state or local community. You can search HUD's resource locator for help in your area.

It could also help to connect to a housing counselor to discuss your options for finding a more affordable rental. You can search the CFPB's database for a counselor who's local to you.

In some parts of the country, it may be virtually impossible to find a rental that only takes up 30% of your income or less. But if you have the flexibility to move to a less costly home, take advantage of it. Otherwise, try your best to grow your income and look into resources that may be able to provide some financial relief.